Suppose that a country imports $100 million of goods and services and exports $75 million of goods and services,what is the value of net exports?

Question

Quizplus · Accepted Answer

Net exports is calculated by subtracting the value of imports from the value of exports. Therefore, Net exports = exports - imports = $75 million - $100 million = -$25 million. The negative sign indicates that the country has a trade deficit, i.e., it is importing more than it is exporting. Thus, the best choice is D.

Suppose That a Country Imports $100 Million of Goods and Services